Hey Akshat
I am curious to know how did you come about indentifying true value of TIPS music.
Like whats your rational behind selling at 935?
I personally feel that it has a long way to go from here.
The industry projected size as per the managment is 12-15k crores for next 3-4 years
And if you look 10-15 years down the line the industry size can easily be 30-40 or 50 thousand crores
Assuming 10% market share for TIPS revenue for next 3-4 year comes out to be 1200-1500 crores and profit to be around 600-750 crores and it will still trade around 60-70 PE because look at the historic 10year median PE of all the consumer facing FMCG companies they are all at 60-70 median PE range.
So I believe considering such a strong bull market I believe a business like TIPS with so 100+ ROCE and 70+ ROE and 50-60% PAT margin once this story unfolds in the broader markets with many media channels covering it will explode like anything.
I feel once the euphoria hits the market will price in 10-15 years of earnings in next 2-4years
I might be wrong but I feel music industry has lots of room to grow multifold from here.
And companies like TIPS will keep on trading at high PE range of 50-70 for years to come.
Just want to have a health discussion on that.
Open to newer perspectives.
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